Revenue has updated its guidance on income tax relief for health insurance covering medical and /or dental benefits to outline an administrative practice that will take effect from 1 January 2026. From this date, Revenue will accept that the standard rate of tax, currently 20 percent, will apply to all health insurance policies providing medical cover. This rate will be applied to the lesser of the premium paid or the applicable cap.
Prior to 1 January 2026, where a health insurance policy covers both eligible and ineligible benefits for income tax relief purposes under section 469 TCA 1999, a blended rate of tax relief is applied. The pre-1 January 2026 position will continue to apply to health insurance policies providing dental cover. The guide provides examples of the pre and post 1 January 2026 position in section two.
From an administrative perspective, the guidance has been renamed and details relating to the tax treatment of premium refunds made due to Covid-19 has been removed as it is no longer relevant. Revenue contact details in respect of claims by authorised insurers has also been updated in the guidance.
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